Equipment finance industry confidence rises for third straight month
The index, which provides a qualitative assessment from key executives within the $1.3 trillion sector, climbed to 61.6 in July, up from 58.2 in June.
The Equipment Leasing & Finance Foundation today released its July 2025 Monthly Confidence Index for the Equipment Finance Industry (MCI-EFI), revealing a third consecutive month of increasing confidence in the equipment finance market.
Providing an executive perspective on the MCI-EFI’s findings and the outlook ahead, Jeffry Elliott, CLFP, CEO of Elevex Capital and Equipment Leasing & Finance Association Treasurer, shares his outlook: “As we navigate the second half of 2025, concerns around inflationary pressures driven by escalating tariffs and the economic drag from intensified immigration enforcement are becoming increasingly pronounced. These forces are not only straining supply chains but also constraining labor availability—two critical components for productivity and growth in the commercial equipment finance sector.”
Elliot added, “However, there is a silver lining on the horizon. The push for onshoring and domestic manufacturing, while not an immediate remedy, holds long-term promise. As companies reconfigure supply chains and invest in U.S.-based production, we anticipate a resurgence in demand for equipment financing—particularly in automation, logistics and infrastructure. Looking ahead, the groundwork being laid today for a more self-reliant industrial base could usher in a new era of opportunity for the equipment finance industry.”
July 2025 survey results:
- Business conditions: When assessing the next four months, 37.5 percent of responding executives believe business conditions will improve (up from 29.6 percent in June). The majority, 58.3 percent, believe business conditions will remain the same (down from 59.3 percent in June) and 4.2 percent believe business conditions will worsen (down from 11.1 percent in June).
- Capex demand: For the next four months, 37.5 percent of the survey respondents believe demand for leases and loans to fund capital expenditures (capex) will increase (up from 29.6 percent in June). 58.3 percent expect demand to remain the same (up from 55.6 percent), and 4.2 percent believe demand will decline (down from 14.8 percent in June).
- Access to capital Over the next four months, 16.7 percent of respondents expect greater access to capital to fund equipment acquisitions, a decrease from 18.5 percent in June. The majority, 70.8 percent, anticipate the same access to capital to fund business, down from 81.5 percent the previous month. 8.3 percent expect less access to capital, up from none in June.
- Employment: Regarding employment over the next four months, 20.8 percent of executives expect to hire more employees, a decrease from 33.3 percent in June, while 70.8 percent foresee no change in headcount (up from 66.7 percent last month) and 8.3 percent expect to hire fewer employees, up from none in June.
- U.S. economy: Just 8.3 percent of leadership evaluate the current U.S. economy as excellent, up from none in June. 91.7 percent assess it as fair, down from 96.3 percent last month, with none evaluating it as poor (down from 3.7 percent in June).
- Economic Outlook: Over the next six months, 41.7 percent of respondents believe that U.S. economic conditions will get better, a notable increase from 29.6 percent in June. Additionally, 41.7 percent expect the U.S. economy to stay the same (down from 51.9 percent), and 16.7 percent believe economic conditions will worsen, a slight decrease from 18.5 percent last month.
- Business development spending: Over the next six months, 25 percent of respondents believe their company will increase spending on business development activities, up from 18.5 percent in June and 75 percent believe there will be no change in business development spending (down from 77.8 percent), with none believing there will be a decrease in spending (down from 3.7 percent last month).
July 2025 MCI-EFI survey comments from industry executive leadership:
Bank, small ticket:
“I am optimistic about the commercial equipment leasing and finance industry because of the results. Specifically, 2025 has been a strong year of origination growth and portfolio performance that is within guidance and improving. While sentiment has been low, it is improving to better align with what I actually see happening in the market. I am cautiously optimistic that 2025 will be a solid year for the industry.” -- David Normandin, president and CEO, Wintrust Specialty Finance
Independent, Small Ticket"
“Tariffs do not appear to be driving inflation as many economists projected. Any fed funds rate reduction would help increase economic activity.” -- James D. Jenks, CEO, Global Finance and Leasing Services, LLC
To access more details and read the full survey results, visit the MCI-EFI web page.
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